Hong Kong , with its glittering skyscrapers and luxury malls , is home to some of the world 's richest people but new government figures show that a fifth of its population lives in poverty .

About 1.3 million people , or 19.6 % , of the population were deemed to be living below the poverty line in 2012 , according to the Hong Kong Povery Situation Report 2012 released on the weekend .

It is the first time the city 's government has set a poverty threshold , which stands at 50 % of median household income before tax or welfare benefits .

`` That poverty line marks an important milestone in our effort to alleviate poverty in Hong Kong , '' Matthew Cheung , Hong Kong 's secretary for Labour and Welfare told CNN on Monday .

`` We want to build a more caring , compassionate and inclusive society here . ''

Cheung said that Hong Kong 's leader , Leung Chun-ying , would announce a package of measures early next year to help those struggling to make ends meet .

`` We want to really tackle the problem of intergenerational poverty , social upward mobility is very important , promote employment and promote self-reliance , '' said Cheung .

Leung , who took office in the former British colony last year , has pledged to narrow the city 's gap between rich and poor , which is at a record high . Although part of China , Hong Kong has its own government and legal system .

The city 's Gini coefficient , which measures income equality , stood at 0.537 in 2011 , the latest year that government figures are available , up from 0.533 in 2006 . A reading above 0.4 suggests potential for social unrest .

If welfare benefits such as social security assistance and old age allowance were included , Hong Kong 's poverty rate would fall to 15.2 % or 1.018 million people , the government 's Commission on Poverty said .

Carrie Lam , Hong Kong 's chief secretary for administration and chairman of the commission , said that the poverty line had limitations because household assets are not taken into account and this may overstate the number of people living in poverty .

The 2012 poverty line for one-person households was set at a monthly income of 3,600 Hong Kong dollars -LRB- $ 464 -RRB- ; 7,700 Hong Kong dollars -LRB- $ 993 -RRB- for a two-person household , 11,500 Hong Kong dollars -LRB- $ 1,483 -RRB- for a three-person household and 14,300 Hong Kong dollars -LRB- $ 1,844 -RRB- for a four-person household .

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A fifth of Hong Kong 's population lives below official poverty line

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First time government has set a benchmark

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Gap between rich and poor is widening

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Government set to announce new measures to help poor